March 21st, 2017 Mortgage Industry Update

The Bank of Canada announced on March 1st that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. CMHC has announced that its rate premiums will rise on March 17th. Many fixed rates are predicted to rise slightly.

Additionally this week:
– Statistics Canada: Mortgage borrowing up $1.2B to $18.9B in Q4 2016 while non-mortgage borrowing up $8.5B quarter-above-quarter to $9.5B.

– Year-over-year basis, home prices across Canada up by 13.4% in February, the largest annual increase since November 2006.

– Teranet-National Bank Composite HPI jumped almost 1% from January, largest rise in 18 years. Toronto saw increase of almost double; 1.91%. Average value of homes in Toronto rose by 1.9 per cent, making February the 13th straight month of home price increases in the city.

– CREA: Home sales though its MLS system hit their highest level since last April, gaining 5.2 per cent in February compared to January. National average price for a home sold in February was $519,521, up 3.5% from a year ago, boosted by Greater Vancouver and Greater TO.

– RBC: Predicting a 2.1% growth rate for the Albertan economy this year, the second fastest pace in Canada, as well as 3.3% in 2018.

– OREA: Augmenting supply of homes in Toronto by improving rate of new construction is key to addressing the city’s affordability situation.

Stay tuned for the next update!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.